Hologic (NSDQ:HOLX) said today it inked a $125 million deal to acquire bioresorbable tissue marker developer Focal Therapeutics.
Aliso Viejo, Calif.-based Focal Therapeutics produces the BioZorb bioresorbable, three-dimensional tissue marker which is intended to improve lumpectomy surgeries by marking the tumor excision site for monitoring and future treatments.
Hologic said that it will add the BioZorb marker to its breast health product portfolio. The Marlborough, Mass.-based company said that the deal, in conjunction with its recent acquisition of Faxitron Bioptics which closed in August, significantly strengthens the company’s position in the breast conserving surgery market.
“Acquiring Focal Therapeutics strengthens our position in an attractive, adjacent breast health market, and is consistent with our capital deployment goals. The transaction is accretive to our revenue growth rate and gross margin, broadens our recurring revenue base, and provides attractive return on invested capital,” Hologic prez & CEO Steve MacMillan said in a prepared release.
Focal Therapeutics has raised approximately $16 million in revenue over the last year, Hologic said. The company expects the acquisition to be neutral to its non-GAAP earnings per share for the fiscal year 2019, and accretive after.
“We are very excited to become part of Hologic. Hologic’s long-standing commitment to early cancer detection is key for success in breast conserving surgery. Hologic is the perfect fit for our company,” Focal Therapeutics co-founder & chief medical officer Dr. Gail Lebovic said in a press release.
Earlier this month, Hologic lowered the revenue expectations for its Cynosure division by $15 million to take into effect lost and reduced sales associated with an FDA warning from last month which raised concerns about the validity and functionality of “vaginal rejuvenation” products and procedures.
